Sourcing and Contract Management Achieving Cost Savings and Reducing Risk Cynthia Pavana, Cloud Procurement Product Strategy Mike O’Connor, Cloud Procurement

Sourcing and Contract ManagementAchieving Cost Savings and Reducing Risk

Cynthia Pavana, Cloud Procurement Product StrategyMike O’Connor, Cloud Procurement Product Strategy

October 2, 2014

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |


Safe Harbor StatementThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Sourcing & Procurement Contracts Agenda

Why Sourcing & Contracts in the Cloud?

Procurement Contracts Overview & Release 9 Highlights

Sourcing Release 9 Overview and Demo

Roadmap

Q&A


Security

SupplierManagement

Purchasing

Supplier Portal

Oracle Fusion Procurement Cloud ServicesComplete Source to Settle Solution

Self Service Procurement

SocialCollaboration

Procurement Contracts

Payables

Analytics

SupplierQualification Management

Sourcing


Why run Fusion Sourcing & Procurement Contracts in the Cloud?

Lower upfront costs & investment risks to gain rich feature set

Minimal disruption to Financial processes & gain experience with Cloud prior to moving core ERP

Shortened time to value: Take advantage of Cloud Technology and UI sooner

Procurement Contracts

Sourcing


Oracle Fusion Procurement

Contracts Cloud Service


Procurement Contracts Cloud Service Streamlined Authoring, Electronic Collaboration, Better Compliance

Standardize

• Enhance regulatory compliance with deviations reporting and audit trail

• Provide global visibility to key stakeholders with a consolidated repository for all contracts

• Reduce contract leakage by automatically enforcing contract pricing across the enterprise

• Reduce contract cycle times as sales reps quickly draft standard contracts with Contract Expert

• Improve negotiations with MS Word collaboration and redlining

• Improve contract effectiveness with automated renewal management and amendment tracking

• Centralize corporate contract standards and enforce globally

• Implement controls with policy rules and flexible approval workflows

• Ensure effective use of standard clauses and contract templates

• Analyze use of non-standard terms to assess and improve standards

Negotiate Comply


Procurement Contracts Cloud ServiceTerms & Conditions Authoring


Leverage Standards and Negotiate in Word


Compliance and Deviation Tracking


Improved Contract Visibility


Release 9: New subject area for Procurement Contracts OTBI

Greatly increased custom reporting capability


Release 9: Workload Management

• Reduce Days to Contract by actively managing work allocation

• Quickly action contracts sitting in work queues

• Balance workloads for faster turnaround time.

• Identify bottlenecks early to actively manage and reduce days to contract.


Oracle Fusion Sourcing



The New Standard for Work

Smarter Negotiation

The New Standard for Negotiating Lower Costs

• Reduce time by creating negotiations with ease• Accelerate adoption of negotiation best-practices• Improve standardization, collaboration, and compliance• Minimize training and hands-on support• Monitor supplier bidding activities in real-time• Enhance negotiation strategies and improve results


Category ManagerProduct Development

Suppliers Operations

• Simple Event Creation Guided Navigation, Intuitive

Design, Negotiation Templates, Negotiation Styles

• Easy Collaboration Oracle Social Network, On-Line

and Off Line Bid Submission and Analysis, Online Messaging

• Straightforward Oversight

Negotiation Calendar, Activity Tracking, and Recommended Actions

Oracle Fusion SourcingMaximize the Value of Experts



• Negotiation and Award Approvals• Online Messages• Surrogate Bidding• Two Stage RFQ• Prospective Suppliers

Release 9


Oracle Fusion SourcingNegotiation and Award Approvals

Route and Approve Negotiations/Awards

• Ensure accurate and policy compliant negotiations and awards by electronically routing award decisions for approval

• Obtain sign off from all identified approvers and record the approval

• Accommodate unique business requirements by configuring approval routing using flexible rules engine


Oracle Fusion SourcingOnline Messages

Communicate with ease

• Online communication among negotiation participants

• Extend the messaging capabilities of a procurement transaction

• Provides audit trail for future reference

View messages across negotiation amendments

Ability to include attachments in a message


Oracle Fusion SourcingSurrogate Bidding

Enter Responses on behalf of Suppliers

• Accept offline paper responses from suppliers to comply with public sector requirements and to support suppliers with connectivity problems

• Enter the responses online on behalf of the suppliers, and seamlessly them along with all other responses

• Retain full audit trail of when the supplier responses were received

Easily Register a New Supplier

Keep track of who enters Response


Oracle Fusion SourcingTwo Stage RFQ

Ensure fair evaluation

• Ensure impartial judgment of supplier responses in markets that require technical and commercial evaluation

• Evaluate technical merits of Suppliers’ bids in the first stage

• Disclose commercial details of bids that pass the technical evaluation in the second stage

Select “Negotiation Style” that includes Two Stage Evaluation


Oracle Fusion SourcingProspective Supplier

Manage Supplier relationship

• Create new prospective suppliers to include in Sourcing and Qualification

• Promote Prospective Suppliers to Spend Authorized Suppliers during Award process

• Approve the promotion process to use suppliers in purchasing activities Define Business Relationship as

“Prospective” or “Spend Authorized”



DEMO


Looking Forward


Oracle Procurement Cloud: Current Release and Roadmap for Sourcing & Procurement Contracts

Sourcing• Sourcing Event Creation Web Service• Sourcing Descriptive Flexfields

Procurement Contracts• Improved Deliverables Management• MS Word 2010 Integration• Security Enhancements• Amendment Printing Enhancements• Specify Location of Expert Clauses• Re-activate Closed Contracts• Digital Signature for ECM Contracts

Release 8

Sourcing• Surrogate Bidding• Two Stage RFP• Online Discussions• Negotiation and Award Approvals• Notification Subscription

Procurement Contracts• Procurement Contracts OTBI• Contract workload and queue

managementSupplier Management

• Supplier Qualification Management• Prospective Supplier

Release 9

Sourcing• Alternate Bids• Projects Integration• Additional Supplier Qualification

Management Capabilities• Customer Driven Enhancements

Procurement Contracts• Smart Alerts• Customer Driven Enhancements• Microsoft Word Add-in to

author contracts directly in Word

Highlights- Future DirectionsPost 12 month planning cycle


Resources and Upcoming Events


Additional Release 9 Informationhttps://cloud.oracle.com/saasreadiness


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Questions?

Documents

Sourcing and Contract Management Achieving Cost Savings and Reducing Risk Cynthia Pavana, Cloud Procurement Product Strategy Mike O’Connor, Cloud Procurement